King Proposes Eliminating Tax on Health Insurance

WASHINGTON, May 7 -- Rep. Steve King, R-Iowa (4th CD), issued the following news release:

Congressman Steve King released the following statement after introducing the Tax Free Health Insurance Act, which would eliminate taxes on health insurance for those in the individual market:

"In 2012, there were 20.9 million Americans who purchased individual health insurance for themselves and their families," said King. "All of these individuals were not able to deduct this cost from their taxes. Yet virtually all corporations can deduct health insurance. This is a major inequity in our tax code, one that must be addressed through Congressional action. ObamaCare commands these Americans to buy policies yet, for 20.9 million, and only the 20.9 million, they have to do so with after tax dollars. That's why today, I am proud to introduce the Tax Free Health Insurance Act (TFHIA), which is currently cosponsored by twenty one of my colleagues.

"The measure I'm introducing today would address this problem by creating a new tax deduction available to anyone who purchases independent coverage for an individual or family policy. The deduction would be available to anyone who purchases non-group insurance - whether or not they itemize on their tax return.

"The cost of health insurance premiums is skyrocketing because of ObamaCare, so for hardworking American families, this deduction is very important. The bill I'm introducing today would offer these Americans a tax break on the cost of health insurance premiums, which will allow them to spend less and save more. My proposal would help Americans from across the economic spectrum, including small-business owners who own an LLC, LP, Sole Proprietorship, or S-Corp, as well as the hard-working individuals who under ObamaCare are now required to scrape to find extra money to provide health insurance for their families.

"During these tough economic times, it is more important than ever that Congress act to alleviate the economic burdens of health insurance premiums on our constituents. In 2014 it is estimated that the average family of four in America will have an annual income of $51,017. The average family of four also spends $8,290 on health insurance premiums. So the bill I'm introducing today would save the median family of four approximately $1,237 annually.

"ObamaCare is driving up the cost of health insurance premiums. The current structure of the tax code singles out a select few to pay this higher cost with no deduction. TFHIA is a good first step toward fixing our wrecked healthcare system because it would eliminate the largest inequity in the tax code, stand as good policy before and after the repeal of ObamaCare, and place extra dollars in the pockets of consumers who need it most."

To view the text of the bill, click here.https://steveking.house.gov/sites/steveking.house.gov/files/Congressman%20Steve%20King%20Tax%20Free%20Health%20Insurance%20Act.pdf

Original Co-sponsors:

Congresswoman Michele Bachman (MN-6)

Congresswoman Marsha Blackburn (TN-7)

Congressman Mo Brooks (AL-5)

Congressman Paul Broun (GA-10)

Congressman Michael Burgess (TX-26)

Congressman Steve Chabot (OH-1)

Congressman Tom Cotton (AR-4)

Congressman Jeff Duncan (SC-3)

Congressman John Fleming (LA-4)

Congressman Jeff Fortenberry (NE-1)

Congressman Trent Franks (AR-8)

Congressman Phil Gingrey (GA-11)

Congressman Andy Harris (MD-1)

Congressman Tim Huelskamp (KS-1)

Congressman Richard Hudson (NC-8)

Congressman Darrell Issa (CA-48)

Congressman Jack Kingston (GA-1)

Congressman Patrick McHenry (NC-10)

Congressman Randy Weber (TX-14)

Congressman Joe Wilson (SC-2)

Congressman Ted Yoho (FL-3)

TNS 30TacordaCheng-140508-4727916 30TacordaCheng